Angel Oak Mortgage REIT records solid earnings performance

Angel Oak Mortgage Inc., a real estate investment trust focused on investing in nonqualified mortgages, announced that it recorded net income of $21.1 million for the year ended December 31, 2021, and $3.1 million for the final quarter of last year, on net interest income of $49.1 million and $16.6 million, respectively.

The earnings performance of AOMR in 2021 represents a big bump from 2020, when REIT reported annual net income of only $736,000 on net interest income of $33.3 million. The company’s total assets over the period, propelled by loan purchases, also skyrocketed, from $509.7 million to $2.6 billion.

“The fourth quarter of 2021 capped off a truly transformative year for the company, as we continued to capitalize on strong demand for non-QM loans [nonqualified mortgages] and the power of the Angel Oak franchise,” said the company’s president and CEO, Robert Williams. “Since our IPO [in June 2021], we purchased $1.4 billion of loans, bringing our total loan portfolio to over $1.1 billion at year end.” 

AOMR is a publicly traded REIT that is part of Angel Oak Cos., a long-term player in the non-QM mortgage market. It is externally managed and advised by an affiliate of Angel Oak Capital Advisors. AOMR’s affiliated mortgage companies are expected to originate more than $7.5 billion in non-QM loans in 2022, compared to $3.9 billion in 2021, the family of companies recently announced

Over the last six months of 2021, since going public, AOMR has purchased $1.4 billion worth of residential mortgage loans, bringing its total portfolio of residential mortgages and other assets to $2.6 billion as of year-end 2021. That represents 77% growth since its June IPO, AOMR’s earnings statement reveals.

In addition, at year-end 2021, the company was party to six financing lines that allow borrowings in an aggregate amount of up to $1.25 billion. Since year-end, the company has extended the maturity date with respect to multiple facilities and added $50 million of additional committed financing capacity, according to its earnings release.

“We also completed two residential non-QM securitizations during the year, totaling $703.5 million,” Williams said. AOMR also closed on its third sole securitization under the Angel Oak Mortgage Trust (AOMT) shelf in late February — a $537.6 million offering.

A total of some $4 billion in securitization volume across 10 deals has been completed through the AOMT shelf since March 2021, data from Kroll Bond Rating Agency shows. That includes the three sole securitizations — valued at $1.2 billion — that were completed since this past June by the Angel Oak Cos. public REIT, AOMR. 

The REIT declared a fourth-quarter 2021 dividend of $0.45 per share, which is payable on March 31 to shareholders of record on March 22.

“We are pleased with our accomplishments in our first year as a public company, benefiting from the support of the Angel Oak platform, and remain steadfast in our charge to deliver attractive, risk-adjusted returns for our shareholders as we execute on our long-term strategic growth plans,” Williams said.

Angel Oak Mortgage Solutions recently announced that it is allowing short-term rental properties as eligible collateral for its investor cashflow program, though it is not permitting “condotels” to be used as collateral.

The post Angel Oak Mortgage REIT records solid earnings performance appeared first on HousingWire.

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